As you already might know Dollar-cost averaging is a tool for investor to use when they are building savings and wealth over a long period.
But Dollar-cost averaging is also a way for investors to sort of neutralize short-term volatility in the broader equity market.
A very good example of dollar cost averaging is of course the 401(k) plans. Which for the most part regular buying deals are made no matter of the price of any given equity within the account.
If you dont know what 401(k) plans are, then maybe you should read What Is 401(k)?
Dollar-cost averaging can be used as well outside of the 401(k) plans if you choose to do so. You can use Dollar-cost averaging in your mutual funds accounts and index fund accounts.
Dollar-cost averaging is for sure one of the best of the best strategies for beginning investors looking to trade ETFs.
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